The Psychology of Market Cycles

As global markets tumble due to worries about China’s economy and ailing stock market, it’s easy to get caught up with your emotions when stock prices fall drastically. This infographic sums up best the roller coaster of emotions many investors face when markets go through their ups and downs:

Psychology-of-Market-Cycles

Source: The Cheat Sheet

Before you get caught up in the panic, remember that the best time to invest in a good stock is during a crash when prices are low and now might be a good a time as any.

As Warren Buffet famous quote goes:

“Be fearful when others are greedy and greedy only when others are fearful.”

Read more: 3 Ways to Maximize Your Investment Returns During This Market Crash

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